Types of Companies in Brazil
Limited liability company in Brazil
In accordance with the Civil Code in Brazil, one can establish a limited liability company, one of the most suitable forms of business in the country, which offers limited liability to the partners whether local or foreign. In tax matters, an LLC in Brazil respects the same provisions and requirements as for a corporation. A limited liability company in Brazil can be set up by at least two stockholders or companies and there is no need for a minimum share capital. We mention that the members of an LLC in Brazil must appoint a board of managers which will to be in charge with several operations in the company with a prior written authorization from the company’s representatives.
Anonymous company in Brazil
An anonymous company in Brazil is the same with a business corporation, where at least two shareholders are necessary to form such entity. This business form can be close or public and must comply with the provisions of the Corporate Law in Brazil. When incorporating an anonymous company in Brazil, there is no need for a minimum share capital, and the business may register both assets and finances. As the main condition when registering an anonymous company in Brazil from abroad, one should consider hiring a national officer or manager in the firm. In matters of drafting the documents for such entity and the needed licenses and permits, you may address your requests to our company incorporation agents in Brazil.
Branch in Brazil
The Ministry of Development, Industry, and Trade in Brazil issues the authorizations for branches of foreign companies in the country. When registering a branch in Brazil, the parent company must provide a specific capital and please consider that such entity is subject to the taxation system in the country. One should know that the withholding tax is not imposed on the transfer of profits to the parent company.
Sole proprietorship in Brazil
A sole proprietorship in Brazil is the same with a single holder limited liability entity (EIRLI) and respects the provisions stipulated by the Civil Code. Such business form is registered by a single individual who owns 100% of the paid-in capital which must represent 100 times the minimum wage in Brazil. This kind of entity offers complete control to the owner, for obligations and also debts.
For a better understanding of the requirements when setting up a company in Brazil, we suggest you get in touch with our team of company incorporation agents in Brazil.